The Indian corporate landscape saw a flurry of major announcements spanning mergers, significant order wins, regulatory challenges, and strategic expansions across multiple sectors. These developments highlight the dynamic nature of business activities as companies position themselves for growth in the new year.

Major Merger and Acquisition Activity

Devyani International's board has approved a comprehensive Scheme of Arrangement involving Sapphire Foods India. Under this merger framework, Sapphire Foods will amalgamate with Devyani International effective from April 1, 2026. The transaction structure offers shareholders an attractive exchange ratio:

In the healthcare sector, Trident Lifeline strengthened its position by acquiring an additional 9.04% stake in Trident Mediquip for approximately ₹4.42 crore, demonstrating continued investment in the medical equipment sector.

Significant Order Wins and Contract Awards

Several companies announced substantial order victories that will drive future revenue growth. Bharat Electronics Limited emerged as a major winner, securing additional orders worth ₹569 crore since December 29. The diverse order book includes communication equipment, medical electronics, fire detection systems, and various upgrade services.

K2 Infragen achieved a landmark success by receiving a Letter of Acceptance for a ₹262 crore project from Indian Railways through its joint venture partnership. The comprehensive railway infrastructure project covers:

Other notable contract wins included Railtel Corporation securing a ₹56.71 crore order from Assam Health Infrastructure Development & Management Society and Ahmedabad Steel Craft receiving two contracts totaling ₹59.27 crore from Jharkhand Urja Sancharan Nigam.

Operational Milestones and Business Expansions

Olectra Greentech marked a significant operational achievement by commencing commercial operations at its new Greenfield Electric Vehicle Manufacturing Facility in Seetharampur, Hyderabad. The facility represents a major step in India's electric vehicle manufacturing capabilities:

Zomato and Blinkit achieved remarkable operational success on New Year's Eve, delivering over 75 lakh orders—an all-time high. The platforms maintained normal operations despite strike calls, accomplishing this milestone without additional incentives beyond standard New Year's Eve offerings.

Regulatory Challenges and Corporate Restructuring

Vodafone Idea faces a significant regulatory challenge with a ₹638 crore GST penalty from the Additional Commissioner, Central Goods and Services Tax, Ahmedabad. The company has indicated its disagreement with the order and plans to pursue legal remedies.

Several companies completed strategic restructuring initiatives. NLC India transferred seven Renewable Energy Assets to its wholly owned subsidiary NLC India Renewables on January 1, following a Business Transfer Agreement executed on October 31. Similarly, Indegene's step-down subsidiaries completed an amalgamation to form Indegene Healthcare Canada Inc.

Market Platform Migrations and Real Estate Developments

Achyut Healthcare achieved an important corporate milestone by receiving BSE approval to migrate from the SME platform to the Main Board Platform, enhancing market access for investors. In the real estate sector, Modis Navnirman secured the redevelopment contract for BOI Staff Sheetal Co-operative Housing Society in Mumbai, with an estimated Gross Development Value of ₹250 crore covering approximately 3,924.91 square meters.

Britannia Industries received a significant tax demand of ₹108.50 crore plus equivalent penalty from Chennai North Commissionerate, covering six financial years from 2018-19 to 2023-24, related to alleged incorrect input tax credit availment.

ITC shares extended their decline on Friday afternoon, trading at ₹349.95, down 3.82% from the previous close of ₹363.85, as investors continued to digest the impact of an unprecedented government tax hike on cigarettes. The stock touched an intraday low of ₹345.25—marking its 52-week low—after opening at ₹360.00.

Heavy Trading Volumes Reflect Market Distress

Trading activity surged dramatically as investors rushed to reassess positions following the tax bombshell. The stock witnessed exceptional volumes with buyers marginally outnumbering sellers despite the sharp decline.

The stock has now declined 28.44% over the past year, with the recent two-day selloff following Thursday's 10% crash—the worst single-day drop since March 2020.

Unprecedented Tax Structure Creates Cascading Impact

The Finance Ministry's notification has fundamentally altered the cigarette taxation landscape, effective February 1, 2026. The new structure combines a 40% GST rate on MRP (versus 28% on net sales previously) with sharply higher basic excise duties, creating a cascading tax effect that particularly impacts longer cigarette segments.

JM Financial highlighted that the 65mm+ segments, which comprise 70% of ITC's volumes, face the most severe impact from the revised excise duty structure.

Brokerages Slash Targets Amid Margin Concerns

Leading brokerages have moved swiftly to downgrade their outlook as the full impact of the tax changes becomes clear. Motilal Oswal led the downgrades, cutting its rating from 'Buy' to 'Neutral' while slashing the target price to ₹400 from higher levels.

The brokerage noted that ITC will need price hikes of at least 25% across its cigarette portfolio just to maintain current net realizations, raising concerns about consumer acceptance and potential volume declines.

Volume Risks from Illicit Market Shift

Analysts warn that the sharp price increases necessitated by the tax hike could reverse years of progress against illicit cigarette brands. The tax stability of recent years had helped legal cigarette makers gain ground, with ITC delivering 5% volume CAGR over five years as the illicit market's share contracted.

However, the increased price arbitrage between legal and illegal brands poses significant risks. Concerns mount that consumers may downgrade to cheaper alternatives or illicit brands, potentially shifting volumes back to the illegal market and undermining ITC's market position.

The unprecedented nature of this tax increase has created substantial uncertainty about ITC's ability to navigate the challenging period ahead while maintaining its market leadership in the tobacco segment.